Capital requirements for intraday option selling

Trading
1

hey, what’s the ideal capital for intraday option selling, if the monthly expenditure is about 50k rupees?

2

You want to know how much funds you need if you wanna make 50k per month from option selling? If yes maybe @Jason_Castelino can help.

3

My targets are small. I target just 2 percent per month.

2 Likes
4

2% of ₹25 lakh is ₹50,000.

Hitting that kind of return consistently in intraday/positional option selling requires a high level of skill and discipline. Markets can be unpredictable, and a single adverse move can easily erase 5–10% of your capital. That’s why you need adequate risk buffers and contingency plans, not just return targets.

I hope you got your answer.

1 Like
5

Strong opinion -

  1. Only 1-2% of traders actually make money. Jason might make some x% per year. Doesnt mean all option sellers make that money.
  2. A subset of traders lose a lot of money. Then they take loans and lose that too. Just search “lost lakhs” in this forum itself.
  3. From your question, my guess would be you dont actually make money yet from trading, else you should already have some idea on whats possible for you. Don’t just expect to make money just like that, option selling or not.
  4. New traders tend to lose for some time. Dont trade with large capital in this phase. This can last for years, and not everyone turns profitable
  5. Uncertainty is part of trading. When one is profitable, better to target 3x+ of what one needs to hopefully be able to manage that. By this I don’t mean target 3x returns, thats not in control without increasing risk. But instead apply 3x capital. Also can compound this instead of slaving away for a fixed income.
  6. Even better would be to not depend on trading for month to month expenses.
  7. Never take loan to trade. This applies to most of us.
3 Likes
6

I was thinking, most of the traders here would find it tooo less.

Agree. For this FY i have missed that target by a long way. I am sitting at mere 12 percent so far this FY. By march end I may make another 2 percent at max.

2 Likes
7

Strange, i thought this year would be better for option sellers.

So far this has been my worst FY (still decent).
Not enough sustained intraday movement, too many ping pong moves, any volatility increase dies quickly, and almost every afternoon market bounces if market was down a bit. Shorts have suffered this year again.

8

I got hit twice this FY. Losing around 5 percent of capital each time. If that’s removed then it matches 22 percent with one more month to go.

Same. Worst year so far. Previous worst was last FY. Ended with 21percent.